TEST BANK
Fundamental Accounting Principles
John J. Wild
24th Edition
,Table of Contents
Part 1: Accounting in Business
1. Accounting in Business
2. Analyzing and Recording Transactions
3. Adjusting Accounts and Preparing Financial Statements
4. Completing the Accounting Cycle and Classifying Accounts
Part 2: Accounting for Merchandising Activities
5. Accounting for Merchandising Operations
6. Inventories and Cost of Sales
Part 3: Internal Control and Cash
7. Internal Control and Cash
8. Receivables
Part 4: Long-Term Assets
9. Plant Assets, Natural Resources, and Intangibles
10. Current Liabilities and Payroll Accounting
11. Accounting for Partnerships
Part 5: Corporations and Investments
12. Corporate Reporting and Analysis
13. Accounting for Corporations: Organization and Capital Stock Transactions
14. Accounting for Corporations: Dividends, Retained Earnings, and Income Reporting
15. Long-Term Financing: Bonds and Notes
16. Investments
Part 6: Managerial and Analytical Accounting
17. Statement of Cash Flows
18. Financial Statement Analysis
19. Managerial Accounting Concepts and Principles
20. Job Order Costing
21. Process Costing
22. Cost-Volume-Profit Analysis
23. Master Budgets and Planning
24. Flexible Budgets and Standard Costs
25. Performance Evaluation and Decentralization
26. Relevant Costs for Managerial Decisions
27. Capital Budgeting and Long-Term Decisions
Appendices
A. Financial Statement Information
B. Time Value of Money Tables
C. Summary of Accounting Principles
D. Glossary
E. Index
,Fundamental Accounting Principles, 24e (Wild)
Chapter 1 Accounting in Business
1) Accounting is an information and measurement system that identifies, records, and
communicates an organization's business activities.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually
or electronically. This is just one part of accounting.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
3) An accounting system captures relevant data about transactions and then classifies, records,
and reports data.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
4) Financial accounting is the area of accounting aimed at serving external users by providing
them with general-purpose financial statements.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
, 5) Internal users of accounting information do not directly run the organization and have limited
access to its accounting information.
Answer: FALSE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
6) Auditors verify the effectiveness of internal controls.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
7) External auditors examine financial statements to verify that they are prepared according to
generally accepted accounting principles.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
8) External users include lenders, shareholders, customers, and regulators.
Answer: TRUE
Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
Fundamental Accounting Principles
John J. Wild
24th Edition
,Table of Contents
Part 1: Accounting in Business
1. Accounting in Business
2. Analyzing and Recording Transactions
3. Adjusting Accounts and Preparing Financial Statements
4. Completing the Accounting Cycle and Classifying Accounts
Part 2: Accounting for Merchandising Activities
5. Accounting for Merchandising Operations
6. Inventories and Cost of Sales
Part 3: Internal Control and Cash
7. Internal Control and Cash
8. Receivables
Part 4: Long-Term Assets
9. Plant Assets, Natural Resources, and Intangibles
10. Current Liabilities and Payroll Accounting
11. Accounting for Partnerships
Part 5: Corporations and Investments
12. Corporate Reporting and Analysis
13. Accounting for Corporations: Organization and Capital Stock Transactions
14. Accounting for Corporations: Dividends, Retained Earnings, and Income Reporting
15. Long-Term Financing: Bonds and Notes
16. Investments
Part 6: Managerial and Analytical Accounting
17. Statement of Cash Flows
18. Financial Statement Analysis
19. Managerial Accounting Concepts and Principles
20. Job Order Costing
21. Process Costing
22. Cost-Volume-Profit Analysis
23. Master Budgets and Planning
24. Flexible Budgets and Standard Costs
25. Performance Evaluation and Decentralization
26. Relevant Costs for Managerial Decisions
27. Capital Budgeting and Long-Term Decisions
Appendices
A. Financial Statement Information
B. Time Value of Money Tables
C. Summary of Accounting Principles
D. Glossary
E. Index
,Fundamental Accounting Principles, 24e (Wild)
Chapter 1 Accounting in Business
1) Accounting is an information and measurement system that identifies, records, and
communicates an organization's business activities.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually
or electronically. This is just one part of accounting.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
3) An accounting system captures relevant data about transactions and then classifies, records,
and reports data.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
4) Financial accounting is the area of accounting aimed at serving external users by providing
them with general-purpose financial statements.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
, 5) Internal users of accounting information do not directly run the organization and have limited
access to its accounting information.
Answer: FALSE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
6) Auditors verify the effectiveness of internal controls.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
7) External auditors examine financial statements to verify that they are prepared according to
generally accepted accounting principles.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
8) External users include lenders, shareholders, customers, and regulators.
Answer: TRUE
Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
